How to Reduce Risks on Off-plan Property

Buying property before Planning and Building permits is risky, and may have following problems:

1. The Town Planning Department may reject to issue the developer with a Planning Permit or he will be required to make significant changes to the design which makes the property unrecognizable from the one that you have decided to purchase.

2. The Municipal Authorities and District Administration Offices may reject to issue Building Permits (see the reason above).

3. If the Building Permit will not be issued, the Cyprus Electricity Authority will not link your property to the mains supply.

4. Some developers sell off plan properties they are aware that they cannot build. For example, they may sell a type of a property which is restricted on the particular area.

5. The authorities may issue a demolition order against the unlawfully built development.

How to Reduce Risks on Off-plan Property

Whether you have decided to purchase an off plan property without Planning and Building permits, the easiest way to protect your interests and to reduce your risks is an escrow agent.

The term “escrow” means a process where property, documents, money are held by a neutral third party until all agreed conditions will be fulfilled. You may ask any independent lawyer to be your escrow agent and to assist in necessary cases.